Rich Chinese and the American rich have a lot in common. Both dictate economic policy to their respective governments. Long before 2008, the Chinese have kept their exchange rate very low, artificially low. The United States has kept its asset prices artificially high. Both countries provide their wealthiest citizens with enormous subsidies. The Chinese pretend their exchange rate reflects reality and the United States pretends its asset prices are realistic. These practices create hardships for the poor and middle class in both countries. For the most part, the poor and middle class in both countries are unaware they are being screwed.

When the United States wants to subsidize its richest citizens by inflating the value of their assets, interest rates are dropped below the rate of inflation. Eyes are closed while securities laws are broken. The U.S. Dollar is a publicly traded currency, so its value is created in an open market. To lower the exchange rate with the Yuan, the Chinese must change the exchange rate abruptly without the guidance of an organized market.

The Chinese devaluation is no more corrupt than the United States’ artificially lowering interest rates. Both actions are the means to the same end, just in different countries.

Remember that governments are not capable of making economic decisions. They are constantly charged with the task, but they can’t do it. Governments make political decisions, so despite any theatrics to the contrary, all central economic planning helps folks with a lot of political power and hurts everyone else.

The economic dangers Americans face are the result of many decades of subsidizing the rich and keeping wages low. Because the free market has been abandoned, resources are so inefficiently allocated that a recovery before a crash is not possible. The hardships of Americans are created by own government and not the Chinese.